Basically a public corporation is an extended idea of the form of joint stock companies. A public corporation can be defined as a corporate body specially created by a legislative enactment with clearly defined powers and functions and enjoying considerable financial and administrative autonomy. It is a creation of law and represents the most significant development in the field of management of state enterprise in the present century. A classical definition was given by President Roosevelt, The President, in his message to the American congress observed, “A corporation has the power of the government but possessed with flexibility and initiative of a private enterprise.